Bp Marketing Problem After Oil Spill

British rock oils Marketing Problem Florida International University spend 2011 Alex Del Veccio Yudith Torres BP Marketing Problem In April 20th, 2010 atomic number 53(a) of the worst environmental raw(a) hazards that were brought on by a men happened. We atomic number 18 talking around the British petroleum Oil downslope on the Golf Coast. The disaster not but unnatural the plants, animals and flock living in the field of operation but also the externalize of the association.British Petroleum has been productive on creating a powerful brand go for, macrocosm authentic to the core value of its business and work uping the good go out of their clients, now BP is assay to save what is go away after the disaster. The disaster leads to many angry people, including environmentalists, sh arholders and the general normal to require causes to bring down the companionship reputation. BP has been accused of 11 workers dead and 17, injured. The cessation of the spill is close to the size of Rhode Island, running across the northern disjunction of Mexico between the mouth of the Mississippi River and Florida.The spill runs wide, threatening the coastlines, and deep, traveling under about 5,000 feet of water and 13,000 feet under the seabed. The Deepwater Horizon well is leaking 5,000 barrels per day, shutting down fishing across the stirred atomic number 18as, damaging fragile habitats and set animals in peril. BP was also accused of trying to silence the scientists that were studying the make of the inunct spill, not allowing publishing researches done for the company this clause was denotative in their contacts.The entire situation has position BP with a bad incarnate sign in the entire world leading to customer to scraps buying its products. This crisis has result in a negative publicity, threatening the image of the company and having effects on people intelligence of the company and its products. BP has responded to the event, tr ying to diminish the severity of the contamination, in a desperate effort not to lose its societal legitimacy and seen to being irresponsible and dishonest with the public.These are a few of many pictures that were put out at that place by the media, making the problem even worse for British Petroleum, those images were directly associated with the can, death, contamination, social irresponsibility, unhappy people. BP has a grand problem, they lease to make people to substantiation associating those images with its corporation and products, and recoer its good name again. Consumer Behavior Issues as a result of BP the fossil petroleum spill Consumer attitudes toward BP products were badly affected by the anele spill there was not favorable opinion about the corporation resulting on the decline of consumer intentions to buy BP products.BP oil spill has impacted acquire behavior, the spill rattled the company, causing the stock to lose about half its value and prompting To ny Hayward CEO to resign and be replaced by tail Dudley, But the company was able to get the oil gusher stopped and has been stipendiary to repair the damage to the local economy. The company is paying to light-coloredup an estimated of $20 jillion, as a result the company temporarily suspending its dividend, in some other blow to investors. The dividends were reinstated in February 2011.Despite the fact that many surveys has showed that people has no intention to boycott or switch from BP brand ( (Harrison) the consumer perception of the company was reflected on consumer go outingness to invest on BP stocks, maybe because many of them were normative influenced change their behavior to meet public opinion expectations. Consumer awareness has shifted dramatically when there is a catastrophe related to a big corporation such as British Petroleum, consumers has jointed forces and organized protests to show their disgruntlement with the corporation and touch them to assimilate full responsibility for the disaster.The oil spill has had effected no only on consumer attitudes towards BP products, but to other industries too. Approximately 71% of consumers were unsounded concerned about the safety of consuming seafood, and 23% reported they assimilate reduced their seafood consumption as a result of the oil spill ( (Bianco) Consumer analysis Of British Petroleum after oil spill check to a rat Index work, (Index, 2010) British Petroleum public image went below Goldman Sachs (and investment bank many feel contributed to the financial crisis in 2008). This Survey that came out in June 2010 show these findings.Only Toyota who went through a massive recall shows worse. Many more(prenominal) surveys show that consumers were not enrapture with British petroleum (eye, 2010) Following are s few notes from the expression on the corporate eyes website (eye, 2010) * From an Economist and YouGov survey When it comes to desireing BP to do the even off thing in s topping the oil spill and cleaning it up, 9% of respondents said they trust BP a great deal and 13% trust BP quite a bit while 20% strike only some trust that BP will do the right thing, and another 20% said they collapse actually little trust that BP will do the right thing.The majority of respondents, 28%, trust BP not at all. The rest respondents stated that they were not sure how they felt. * From the same Economist and YouGov survey 65% of respondents panorama at that BP and other companies involved in the oil spill are pointing the blame on others and avoiding responsibility while just 35% believe BP and other companies involved are doing whatever it takes to stop the spill and clean up the oil. * From a USA Today/Gallup poll 34% of the respondents rated BPs reception to the spill as poor and 39% rated it as very poor.Only 6% rated BPs repartee as very good and 18% rated it good. * From a Pew Research Center and subject area Journal Congressional Connection poll 4 4% rated BPs response to the oil spill as poor and 26% rated it only picturesque while 16% rated BPs response good and 3% rated it excellent. * From a CNN and Opinion Research Corp. poll 76% of respondents disapprove of BPs response to the oil spill and 24% percent approve. These surveys and many like them combine with massive protests and boycotts reshaped the Value of British petroleum as reaction to their stocks showed.In late June in 2010 British petroleums stock fell to under 28 dollars per share. This was a major drop from there yearly lavishly of over 61 dollars per share in February in 2010. While the consumer trend for the oil industry is salvage in high prerequisite, British petroleum still going revenue loss due to poor public perception and also disconnected revenue from the oil spill and cleanup efforts. fit to this story BP has it work cut out for them financially (JACOBSON, 2011) Almost $50 billion in lost market value. Its rivals stock is up just about 15 p ercent, while BPs has been down roughly 25 percent.Shares that were outlay $60 a piece on April 20, 2010, are worth $46 now (JACOBSON, 2011). * Sales of $24 billion of the companys assets to be set aside to abet pay for claims and other costs. Gheit said roughly 10 percent of BPs occupation and reserves were sold last year. Another $6 billion worth are expected to be sold this year (JACOBSON, 2011). * $3. 8 billion paid out in claims so far. Thats part of a $20 billion fund set aside under pressure from the government last year (JACOBSON, 2011). * Liabilities could swell by tens of billions more.If BP is found to be reprehensively negligent (several investigations and reports have yet to be completed), the price tag could surmount $50 billion. (Contending their equipment and work played a major role in the cause of the accident, BP is suing Halliburton and TransOcean for billions of dollars as well. (JACOBSON, 2011)) However not all is lost for BP. As you look at the Global 500 (500, 2011) ranking of the top one hundred companies in the world. You will notice that six of the tops 10 are oil companies, including BP at number four.This not only shows that oil is a very profitable industry and in high demand despite calls for option talent originations over the past decades. Unless such an alternative energy source can come about and service the billions of people who demand energy the outlook in the oil industry will continue to be high. Which also means the oil industry will continue to be profitable. When we also add into the factor that developing countries have increased demand for oil and global demand for this resource is predicted to go from 41. million gallons per day to 86. 6 million gallons by the year 2025 (prices, 2010). I do not see consumer trends in oil consumption a problem for BP. This consumption pattern will be an advantage for BP. The posterior line is that BPs industry and products looks like they will be in high demand for the fore seeable future. However even though Bps product is widely used they are not immune from poor public perception. Since the oil spill Bp has been forced to sell off some assets (White, 2011) to pay for loss revenue, and pending lawsuits from the oil spill.BPs problems continue outside of its pays. In early 2000 British petroleum launched a new campaign called Beyond Petroleum. This campaign was targeted top the environmental conscious consumer. Bp wanted to become established as an environmentally friends energy company. While its hard to see if that campaign was successful regardless, any affirmatory perception or equity acquired from that campaign was lost do the oil spill. Reinventing themselves as an eco palsy-walsy company looks to be a difficult task at this clipping.Moving forward With the environment a major issue in todays world it may be a good idea for BP to invest in research for safer more eco friendly offshore drilling technology. Another way for BP to win over the public interest is to come up with a cleaner alternative source of energy. Would it be ironic that a oil company invents an alternative energy that is safer and cleaner for the environment. The emotional element of BPs brand invokes bad feelings. With concerns about Global Warming and endangered species many feel BP broke its put up Promise started by their campaign Beyond Petroleum.For now British Petroleums strategy should be to al big money resources for research for the above mentioned. And also allocate resources to improving public perception. One example is their commercials with local business owners that were affected by the Gulf oil spill. They are telling the consumers that they are stand by their mistakes. I would also advise BP to communicate to the public what changes they are making from organizational structure to safety precautions.BP may also look into working with eco friendly organizations and organizations like the World Wild Life foundation. much(prenominal ) organizations have voiced strong criticism BP after the oil spill. working(a) with these organizations would go far in telling the public they have dark over a new leaf. Marketing Recommendations for British Petroleum (prices, 2010) British Petroleum needs to have specific plan for each one of the possible scenarios they might encounter, the company took three months to stop the oil leak, and they are still working on the cleaning process.This shows that BP was not prepared to character such a huge natural disaster they did not have a contingency plan appropriated. Its is very important than the fist reaction that company takes to resolve the problem is the most suitable one, because that is when the media and public tutelage are more condense on the problem, and a prompt resolving will lead a faster recovery of the company image. BP should focus on mortification, taking full responsibility for the situation and its consequences.This strategy citation public critique in adv ance and give the company a more significant public relations ground. After admitting and apologizing for the catastrophe, BP essential take an action to avoid that is going to happen again. Creating more and secure slipway to drill oil, the company needs to improve procedures, safety and competence to find oneself the lost trust from the public. BP need to regain their good mane, at the spot the company is located in the awareness set in the customer mind that it does mean that its products will be consider if people has a negative image in it.British Petroleum need to build positive feeling towards its corporation, one option is to develop green advertising, the company have invested million on it, but today they should put more emphasis on it. Create wear out image (social factor) by better approach to compensate those who have been affected. There were many people affected by the catastrophe, people from contrasting communities, they need to focus on the different groups o f people they are trying to reach in order bring the message more efficiently failing to do will worse the problem.In order for people to place BP into their consideration set they need to believe that the company is reliable and responsible, in addition people must have good feeling towards the brand. They must invest a lot of money in advertising, informing people what is plan to recover and it is being developed. Those ad must run as many time as its needed, to inform people that we are taking responsibility to backfire those ad claiming the contrary Show you care, that is the primary position British Petroleum must assume.The reality is that the Oil Spill in deep survey water in Mexican Gulf, in April 2010 has made a huge human, ecological and financial lost, and it has ruined the companys reputation. There is not way the company can go back in time and avoid what happened, but they can look forward and make the beat out out the situation. If BP can convince the public that t hey truly believe that its image will be reinstated, people will start bearing positive feeling towards BP. Bibliography 500, G. (2011). And the worlds biggest companies areRetrieved 2011, from Cnn Money 2011 http//money. cnn. com/magazines/fortune/global500/2011/ Bianco, V. D. (n. d. ). Louisiana News . Retrieved from Louisianafoodnews. com. eye, c. (2010, june 4). The BP Brand Fallout Consumers Weigh In. Retrieved from corporate eye http//www. corporate-eye. com/blog/2010/06/the-bp-brand-fallout-consumers-weigh-in/ Harrison, M. (n. d. ). Wave Matrix. Retrieved from wavematrix. com. Index, J. C. (2010, hune 24). Survey BPS consumer perception sinks below Goldman Sachs. Retrieved from http//www. mediabistro. om http//www. mediabistro. com/prnewser/survey-bps-consumer-perception-sinks-below-goldman-sachs_b3951 JACOBSON, M. (2011, april 26). One Year Later, Where Does BP Stand? Retrieved from pbs. org http//www. pbs. org/newshour/addition/2011/04/bp-one-year-later. html prices, O. (2 010, July ). Retrieved from oilprices. org http//www. oilprices. org/ White, G. (2011, feb 22). BP to sell off North Sea asset. Retrieved from the telegraph http//www. telegraph. co. uk/finance/newsbysector/energy/oilandgas/8341366/BP-to-sell-off-North-Sea-assets. html